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PHI vs. TLSNY: Which Stock Is the Better Value Option?

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Investors interested in Wireless Non-US stocks are likely familiar with PLDT (PHI - Free Report) and TeliaSonera AB (TLSNY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

PLDT and TeliaSonera AB are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PHI currently has a forward P/E ratio of 7.46, while TLSNY has a forward P/E of 21.06. We also note that PHI has a PEG ratio of 1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TLSNY currently has a PEG ratio of 4.08.

Another notable valuation metric for PHI is its P/B ratio of 2.38. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TLSNY has a P/B of 2.51.

These are just a few of the metrics contributing to PHI's Value grade of A and TLSNY's Value grade of C.

Both PHI and TLSNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PHI is the superior value option right now.


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